The measure of operating cost of a mutual fund for an investment company is called as expense ratio. It is calculated through a yearly calculation, in which operating expenses of a fund are divided by the average dollar value of its assets under management. This Management expense ratio calculator provides you the expense ratio with the known values of particular expense and net sale.
Calculate the management expense ratio for particular expense of $50000 and Net sales of $1000000.
Management expense ratio = ( 50000 / 1000000 ) *100
= 5 .